Contrary to popular belief, ERPs (Enterprise Resource Planning systems) aren’t just for huge multinational companies.
Today, they are essential for businesses of all sizes – from growing small-to-medium enterprises (SMEs) to large, multinational organisations – that need to unify disparate data streams and automate manual, labour-intensive processes.
Companies typically need an ERP when they have outgrown simple accounting software (like QuickBooks) and are struggling with information silos, poor inventory visibility, or inefficient manual workflows.
What are the Key indicators that a company needs an ERP?
- Operational inefficiency: Manual data entry, disparate spreadsheets, and disconnected, siloed, or duplicate systems hinder growth.
- Growth and complexity: The business is scaling rapidly, expanding into new markets, managing multiple subsidiaries, or dealing with complex supply chains.
- Poor inventory/financial visibility: Inability to track inventory levels, project status, or financial metrics in real-time.
- Regulatory compliance needs: The industry requires rigorous financial reporting, audit trails, and compliance management.
- Slow month-end closing: The process of consolidating financial data takes too long.
What are the industries that heavily utilise ERP systems?
While adaptable to any industry, ERPs are critical for sectors with complex operations:
- Manufacturing: For production planning, inventory management, supply chain optimisation, and cost accounting.
- Wholesale distribution: To manage inventory, warehousing, and logistics.
- Retail (including eCommerce): For omni-channel management, integrating brick-and-mortar stores with online sales, and managing thousands of SKUs.
- Professional services/consulting: To track project profitability, manage resources, and automate time/expense tracking.
- Healthcare & life sciences: For managing complex inventories, regulatory compliance, and patient data.
- Software & IT services: To manage subscriptions, recurring revenue, and project-based accounting.
- Nonprofit & education: To manage grants, donor relations, and complex funding structures.
Examples of types of companies by size (that require ERP)
- Small businesses & startups: Need flexible, cloud-based, and often modular ERPs to support growth and manage resources without excessive IT costs.
- Mid-market: Require scalable solutions that offer deeper industry-specific functionality to replace legacy systems.
- Enterprises: Need robust, comprehensive systems to handle complex, global, multi-subsidiary operations.
Any business looking to improve, streamline its processes, or increase profitability through better data management should seriously consider an ERP system.
Think you fit the bill for an ERP system? Get in touch with is for our ERP Discovery Day. Let us match you to the perfect ERP providers… Just click here
